Day: January 21, 2022

A firm may be able to recover a debt that was previously written off. The following entries will be made if this happens: Debit – Debtors Credit – credit bad debts recovered account – to restore the bad debt recoverable. Read More …

In some cases a firm may create a provision for discounts allowable in addition to provision for doubtful debts. This happens where a firm anticipates that some of the debtors may take up cash discounts offered by the firm. The Read More …

Some debtors may not pay up their accounts for various reasons e.g. a debtor may go out of business. When a debtor is not able to pay up his/her account this becomes a bad debt. Therefore the business/firm should write Read More …

A prepaid expense is an expense that is not payable but cash has already been paid. A prepaid expense should not be charged in the P&L a/c but should be carried forward to the next financial period and should be Read More …

Qualities of an Effective research Topic A good research topic has the following qualities: It is researchable: That means it is a subject where the research instruments can be easily formulated and the study population sampled. The objectives that will Read More …

This is income that is not yet due but cash has been received for it. This happens where an income is payable in advance e.g. Rent payable 3 months in advance. A prepaid income should not be reported in the Read More …

Revenue and costs must be recognized as they are earned or incurred, not as money is received or paid. They must be matched with one another so far as their relationship can be established or justifiably assumed, and dealt with Read More …

Research Methods Topic Selection The term “topic” refers to subject, issue or area under discussion. The topic (subject) one selects to research is essential in the success of the research project. This is mainly because one’s interest in the topic Read More …

RESEARCH METHODS FORMS OF QUALITATIVE RESEARCH Qualitative research include the following: Ethnographies, which are observations of groups. Phenomenological studies which study subjects over a period of time through developing relationships with them and reporting findings based on research experiences. Case Read More …

A firm may dispose off its non-current assets in the following 3 ways: Selling the asset.  Asset being written-off from damage/accident/theft. Asset is scrapped/not used anymore. When an asset is disposed and is no longer used by the firm, the Read More …